Our ambition is to become one of the leading plant-based players in Northern Europe. We aim at reaching our targets by always delivering outstanding taste and having an innovative, consumer insight driven offering in non-dairy, fruit, plantbased snacks and breakfast cereals. We will differentiate ourselves and build world-class brands based on the brand positioning, Northern Magic. Made Real. For us, fearless creativity means being passionate, never shortcutting quality and always offering convenience. We enjoy unparalleled Nordic luxury that does good for the planet and its people, and we want to empower others to do the same.
Performance in 2019
The year 2019 saw a strong focus on re-investments into our brands and categories to drive future growth. The competitive environment of Fazer Lifestyle Foods continues to be tough in the Nordics. Growth in the smoothie category has not been on the desired level, while the non-dairy market developed favourably.
We acquired the Finnish food company Kaslink, a well-positioned player on the Finnish market offering Nordic food products, cooking products, drinks and snacks. Nutritionally rich and sustainable Nordic oats are a central focus area in the company’s offering.
We made an investment decision to double our oat milling capacity in Lahti, Finland and Lidköping, Sweden. With the change, we want to meet the growing oat demand and provide top-quality ingredients for our businesses. These investments will total 30 million euros.
Our ground-breaking 50-million-euro investment in building a xylitol manufacturing facility in Lahti captures a huge opportunity in milling and circular economy thinking. The facility will use oat hull as raw material, utilising the side stream of the oat milling process with state-of-the-art technology. Next to the xylitol manufacturing facility, Fazer will build a bioheating plant which will provide bioenergy for our entire Lahti site. The xylitol manufacturing facility provides possibilities for several patents.
We continued strategy development and initiated our plant-based product strategy “Facilitating a plant-powered lifestyle without compromises”. Froosh launched a new range of additive-free juices without added sugar. Fazer Yosa saw growth, entering another new product category, Frozen Oats, in ice cream coolers.
We want to ensure our position as a significant player in the Nordics. Therefore, we will invest further in establishing our business outside of Finland, with Sweden and other Nordic countries as particular focus areas.
Oat is and will continue to be at the core of the business, and we will focus our development of oats in various categories. We will work hard in the non-dairy, plant-based meals and breakfast categories and build on successful brands. The Froosh brand will be modernised and further developed.
The acquisition of Kaslink will further drive our success in non-dairy, and the ongoing integration will enhance Fazer Lifestyle Foods’ offering of sustainable snacks for healthy lifestyles.
We have evaluated different options for increasing the efficiency in the production of the Fazer Yosa oat products and enabling growth, and thus decided to close the production facility in Kaarina, Finland and to move operations to the factory in Koria, Finland. The actual closing of the production facility in Kaarina will take place in autumn 2020.